MoneyFront offers financial advisory services via a comprehensive portfolio approach. Deploying a smart algorithm, it profiles the client and suggests the best Direct Plan suited to the investors’ persona. The company was started in 2015 by 3 school friends.
Moneyfront - The idea
All 3 Co-founders, school friends (Mohit, Anil and Puneet) were sitting and discussing their investments around end of 2015. That’s when they figured out that they were sacrificing a big slice of thier returns as commission to the distributors. Being financially aware, they wanted to avoid this situation and maximise returns. Also,a void the clutter of so much paper-work around. That’s when the idea of Moneyfrony came up – completely paperless with automated advisory for clients.
Company’s name MoneyMAP was inspired by their founders (MAP – Mohit, Anil and Puneet). However, the brand Moneyfront was more a function of that they wanted to keep client’s interest and client’s money at the forefront of everything.
Moneyfront - Founders
All three of the founders have been the best of friends since school an come from business families.
Mohit Gang the CEO and Co-founder of the company worked at Citibank and HSBC.
Anil Bang, the Co-founder have experienced working for ICICI Bank and Morgan Stanley
Whereas the third co-founder, Puneet Mehta, also worked at ICICI Bank and then Merrill Lynch.
They all beleive in just one motto: ‘Happy client is the best advocate’.
MoneyFront - Serivce
Moneyfront is a robo-advisory platform offering “direct plans” of Mutual funds. The team is proud about three principles – paperless, simplified &; automated and unbiased advisory. There is negligible awareness around Direct Plans as a concept inspite of being a client-friendly and hugely beneficial option to invest. The company is trying to promote this concept through technology and offering unbiased advice to clients who wish to invest in Mutual Funds.
MoneyFront - Business model/revenue model
As Moneyfront offer only direct plans of Mutual Funds, it doesn’t make any in-built fee or commission from fund houses. Regulations does not even allow to receive any incentive from product providers if the ocmpany registers themselves with SEBI as Investment Advisors. It can only charge a fee for the advisory. It charges a flat fee of Rs. 1200 per client per year for our platform. The services, however, are free for first 6 months for everyone signing before 31st of March.
MoneyFront - Competition
The founders says "Our target customers are all existing investors in Mutual Funds who are currently investing through their banks or local distributors. We want to educate this base about differences between Regular Plans which they are currently getting and ‘Direct Plans’ which we offer being a registered Investment Advisor with SEBI. Regular plans have in-built commissions which are deducted out of clients’ returns and paid out to intermediaries. We don’t make any kind of commissions and hence, returns for customers are higher by up to 1.5% annually in the same schemes which they currently invest into."
MoneyFront - Growth
Oh yes, the team was just telling the idea to few well-informed friends. And the moment they realised, what they were saving with Moneyfront, they just pounced on the idea. That’s how they were convined and inspired to make it grand.
MoneyFront - Funding
Initially, the company was boot-strapped by the three founders. They raised a seed round of funding in the mid of 2017.
MoneyFront - Challanges
The most challenging part has been to give simplified options to clients. I would say, it’s a constant journey, never an end. Moneyfront made a first-in-industry switch module with intelligent decryptor that auto-reads clients’ existing portfolios. The Moneyfront customers can simply upload their existing holdings and switch to Direct plans – all paperless, in 5 clicks.
MoneyFront - Future Plans
We want to be seen as someone who has simplified client’s investment journey, given them holistic wealth solutions which are paperless, cost-effective and are most comprehensively researched. We will expand into other wealth products soon and gradually keep increasing the technological sophistication of our platform. And We want to be a comprehensive robo-advisory platform for clients and see ourselves as one of the biggest player in that space in next 3 years.
MoneyFront - Tools
We use a host of it – for hiring we have explore online portals, and we update and cordinate all of our marketing efforts via Google sheets. We are thinking of moving our servers to cloud based solutions and exploring options on that currently.
MoneyFront - Hiring
Creativity and hunger to work. Plus stability in an un-organised setup and culture. The team just want to give everyone the freedom to express themselves freely. They empower everyone to take certain actions and they are free to contribute ideas which make the compant leaner and swifter. The team extensively work on client-feedback as well. It has a full compendium of it, and keep improving our functionalities basis what we hear from our clients.
MoneyFront - Founder Advice
My fav quote “We are what we repeatedly do…. Excellence then is not an Act, but a Habit.” I am also inspired by Madhushala from Harivansh Rai Bacchan – “Raah pakad tu ek chala chal, pa jayega Madhushala” (take one path and follow it diligently, and you shall reach your destination).